Should I drop the money to start a photo business?

[KmH]

Increasing prices is one of the most difficult things amy business can do (does Netflix ring a bell?) , because most of your current customers will just find another photographer in their price comfort zone.

An axiom of business is that it costs 10 times more to attract a new customer, than it does to keep a current customer. But, kiss most of your current customer base goodby if you raise your prices, and plan for a drop in revenue until your 10 times more expensive marketing campaign starts generating those new customers.

Many retail photography businesses fail right there, because the photographer has insufficient routine networking contacts in the socio-economic community they need to target their marketing to.

 

[Fingtam]

Increasing prices is one of the most difficult things amy business can do (does Netflix ring a bell?) , because most of your current customers will just find another photographer in their price comfort zone.

An axiom of business is that it costs 10 times more to attract a new customer, than it does to keep a current customer. But, kiss most of your current customer base goodby if you raise your prices, and plan for a drop in revenue until your 10 times more expensive marketing campaign starts generating those new customers.

Many retail photography businesses fail right there, because the photographer has insufficient routine networking contacts in the socio-economic community they need to target their marketing to.

Wow, I hadn't thought much about that. But now that I think about it, there will have to be a time in my career when I drop ALL of my clients and need to start from scratch again. I'm stationed in North Carolina right now, but when my contract with the Marine Corps is over I will be going back to school in Minnesota.




Also, I have been reading Todd Reichman's blog since it was suggested, and its very interesting, but I don't think I've found the specific post MLeek suggested.

 

[MLeeK]

Keith summarized MUCH of it well right there.
Basically you want to define yourself, your style and go all of the way. I'll see if I can find the info I am talking about. It may have been a conversation in another forum that he and I are both members of also, but if it is he is more than likely to post the same info here for us too. I had thought it was on the blog as well.

When you target a market who is willing to pay say $10 at the get go when your REAL end point target market is the one that will be paying $1000 you are undermining yourself to begin with. You have established yourself as a $10 product and the customers you HAVE don't want to pay $100 for something they used to get for $10. The $100 customers see you as a $10 product because that's what you are or were.
You didn't see Gucci come on the scene with dollar store bags and shoes to get their start. They started out with a product and a price that matched their target market. They designed themselves as an exclusive, high end, high quality label right out of the gate. Because they did that their target market pays their exorbitant price gladly and the rest of us are scrambling on ebay to get either a good knock off or the real deal at a hell of a discount second hand.
Create yourself and be what you ultimately want to be out of the gate.
Part of what you are selling with photography as a professional portrait/wedding photographer is the luxury. Let's face it now-it IS a luxury item. Yes, everyone should have photographs. However, in order for me (or you or anyone else) to survive in this business we cannot charge anything remotely close to what Wal Mart Portrait Studio charges and even manage to pay the rent, let alone actually own a camera and a lens or two. We need to get paid and we need to pay our CODB/COG's out of that. That makes a professional photographer a luxury item. It also means you have to BE a luxury and that mindset is the KEY.

I did not start out believing what I do now. I started out much the way you had thought to start out. I also barely paid the bills and I certainly wasn't even supporting myself in any way or my family. I stopped, thought, researched, learned and recreated myself, my service and my business completely. I am now our primary income most months. VA Disability is NOT all that hot for an income, let me tell you. And with the economy the way it is my husband's business is in the black, but not by enough to pay the grocery bill most of the time.

I have no idea what your deployment schedule is, but I found I got an incredibly education from all of the years I attended WPPi in Las Vegas. It's in February every year and the classes offered are worth every second of the time and money I have spent to go. I learned an immense amount from the professionals teaching there. This year it's 2/16 thru 23rd. The main part of the convention being the 19th thru the 23rd. I am sure it's probably too late for you to attend this year and next may not be possible, but the following may well be on your radar. The Platform classes are a part of your registration fee. The master classes are an additional amount. THe platform classes are worth every cent of your registration if you don't have the budget for the masters. You WILL learn and be empowered with SO much just in the platform. I also get a coupon code for a discount registration every year, so if you are considering going let me know and I'll either pass it on or share my pass with someone. You can register 2 on one registration. Wedding Photography Courses | Photography Strategies

I know I mentioned before becoming an aspiring member of PPA. PPA also puts on a convention like WPPi every year and it is the same song and dance-EXTREMELY worth it. It's always after WPPi and it changes location every year. Like I said before, the membership to PPA alone opens up a wealth of information and education for you. I HIGHLY recommend it. I believe Todd is speaking/teaching at PPA's ImagingUSA convention this year. That alone would make it worth the trip for me!

I think some of the others here are members of NPPA and a few others I don't know nearly as much about too. If you have to choose one and only one, PPA is my first choice for someone in your shoes.